Co-ops must begin a “manageable series of lifts in farmer milk price” as it is “highly likely” that milk supplies will be significantly reduced this autumn, according to Noel Murphy, chair of the Irish Creamery Milk Suppliers Association (ICMSA) dairy committee.

He said that farmers around the country are having to feed precious winter stocks due to having little or no grass as a result of the drought.

This increases the cost of producing milk, all while milk supplies from the cows are falling, he said.

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This ‘double whammy’ of “feeding more and getting less for it”, will drop supplies, according to the chair.

“We hope that that’s going to push milk price up,” said Murphy.

'Minute calculations'

He noted that the price for the reduced output is down on last year and said that farmers are already looking at every cow in the parlour and doing minute calculations on individual costs and yields.

“The clear message to our co-ops is that if milk is to keep flowing this autumn, then milk price needs to improve.

“There are tentative signs that spot prices are firming-up more in the last month and we anticipate this continuing as the fall in supplies becomes more measurable and buyers come in to buy forward."

He said that “in the meantime, and starting immediately, the price returned to farmers needs to increase by whatever means possible”.

Strong protein market

“The market for proteins is strong and whole milk powder increased almost 3c/l in the last week on the Dutch Dairy Quotes.

“We need all the powers in our industry to chase that increased revenue as farmers are feeling the drought pinch and will feel it for months to come.

“If milk processors are looking ahead and want those lower supplies of milk, then they better start paying for it,” he concluded.